BlockFi chief says crypto lending will survive regulatory pressure

BlockFi chief executive Zac Prince expressed confidence that crypto-lending services would survive despite regulators’ pressure at the state level. The remarks were reported by CoinDesk.

According to Prince, the sector needs clear regulatory rules from federal authorities.

“We are not going to decide what type of lending services are classified as lending based on what New Jersey or Texas does. It all depends on federal regulators like SEC or OCC, which will pave the way for this kind of activity,” he said at the SALT conference organized by SkyBridge Capital.

Prince emphasised that his company’s interest-bearing accounts services do not fall under securities laws, while regulators in several states insist otherwise.

“Clarity must be at the national level,” said BlockFi CEO.

He also said that crypto loans are needed by American consumers and benefit the broader digital asset market. The BlockFi chief expressed the view that the United States should become a leader in the industry, even if that takes time.

“I think we are currently having a constructive dialogue,” Prince commented on the regulator engagement process.

As a reminder, in July the New Jersey Bureau of Securities forbade BlockFi from opening new accounts for state residents. In the same month, Alabama regulator accused the company of selling unregistered securities. Soon became known about BlockFi activity inspections by Vermont regulators. left the BlockFi board.

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